Cryptos Rally, ignore USD negative correlation
Over the past several months, I have spoken about the apparent negative correlation between the US dollar and cryptocurrency prices. For 2021, the pattern has been this: When the USD goes down, the cryptos rally. Well, that concept is out of reach today as the greenback and cryptocurrencies are showing strong gains. With the weekend fast approaching, Bitcoin BTC (+ 7.68%), Ethereum ETH (+ 3.04%), Ripple XRP (+ 3.48%) and Litecoin SLD (+ 5.97%) are all in the green.
It’s been a big week for Ethereum. Prices have risen over 20% in the past seven days and the recent hard fork has fueled bullish sentiment. Known as the “London Hard Fork”, The code transition will do the following:
- Burn excess ETH coins
- Make transfer fees more predictable
- Reduce mining gas costs
- Double ETH block sizes
The London Hard Fork has the potential to make ETH much more consumer friendly. The idea here is to improve the circulation and demand for ETH – if it works, ETH will gain a competitive advantage over many other cryptos.
Cryptos Rally, Ethereum Closes Close To $ 3,000
ETH / USD
Overview: Right now, cryptos are moving at the same pace as the USD. Eventually something will have to give – maybe this weekend will bring the typical divergence.
In a live market update from July, I described a sales opportunity for ETH. Since then, the transaction has been launched and has generated a profit of over $ 230. However, the initial bearish movement did not reach the take profit ($ 2175) and is now in the red. Ultimately, the $ 3,000 grip will determine whether the game is considered a winner or a loser. For now, the London Hard Fork makes it look like the latter.